In mid-May 1978, Clark left to form his own group and Vaughan renamed the band Double Trouble, taken from the title of an Otis Rush song. Following the recruitment of bassist Jackie Newhouse, Pharaoh quit in July, and was briefly replaced by Jack Moore, who had moved to Texas from Boston; he performed with the band for about two months. Vaughan then began looking for a drummer and soon after, he met Chris Layton through Sublett, who was his roommate. Layton, who had recently parted ways with Greezy Wheels, was taught by Vaughan to play a shuffle rhythm. When Vaughan offered Layton the position, he agreed. In early July, Vaughan befriended Lenora Bailey, known as "Lenny", who became his girlfriend, and ultimately his wife. The marriage was to last for six and a half years.

In early October 1978, Vaughan and Double Trouble earned a frequent residency performing at one of Austin's most popular nightspots, the Rome Inn.During a performance, Edi Johnson, an accountant at Manor Downs, noticed Vaughan. She remembered: "I'm not an authority on music—it's whatever turned me on—but this did." She recommended him to Manor Downs owner Frances Carr and general manager Chesley Millikin, who was interested in managing artists, and saw Vaughan's musical potential. After Barton quit Double Trouble in mid-November 1979, Millikin signed Vaughan to a management contract. Vaughan also hired Robert "Cutter" Brandenburg as road manager, whom he had met in 1969. Addressing him as "Stevie Ray", Brandenburg convinced Vaughan to use his middle name on stage.

In October 1980, bassist Tommy Shannon attended a Double Trouble performance at Rockefeller's in Houston. Shannon, who was playing with Alan Haynes at the time, participated in a jam session with Vaughan and Layton halfway through their set. Shannon later commented: "I went down there that night, and I'll never forget this: it was like, when I walked in the door and I heard them playing, it was like a revelation. 'That's where I want to be; that's where I belong, right there.' During the break, I went up to Stevie and told him that. I didn't try to sneak around and hide it from the bass player [Jackie Newhouse]—I didn't know if he was listening or not. I just really wanted to be in that band. I sat in that night and it sounded great." Almost three months later, when Vaughan offered Shannon the position, he readily accepted.

Once was a sweet thang baby... held out her lovin' in our hands
Now I reach to kiss your lips... the touch don't mean a thing
And that's a cold shot baby... yeah that's a drag
A cold shot baby... I let our love go bad
Remember the way that you loved anything I said
Now I see you out somewhere... you won't give me the time of day
And that's a cold shot darlin'... yeah that's a drag
And that's a cold shot baby... we let our love go bad
I really meant I was sorry... for ever causin' you pain
You showed your appreciation... by walkin' out anyway
And that's a cold shot baby... yeah that's a drag
And that's a cold shot baby... we let our love go bad
So sad... too bad... so sad
Don't let our true love run cold baby
Source: LyricFind
Songwriters: Michael Kindred / Wesley Clarke
Cold Shot lyrics © BMG Rights Management